1. 2006 OREGON COMPOSITE RETURN
Form OC and Instructions for Pass-through Entities and Their Owners
This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) or Oregon Department of Revenue
Administrative Rules (OAR). For more information, refer to the laws and rules on our website, www.oregon.gov/DOR.
amount from Oregon sources are required to file an indi-
Introduction
vidual income tax return (see page 3 of Form 40N, Oregon
Individual Income Tax Return for Nonresidents). Corporate
Purpose of form owners of a PTE with any income from Oregon sources
are required to file a corporate excise or income tax return.
For tax years beginning on or after January 1, 2006, pass-
ORS 314.778 allows nonresident owners (including indi-
through entities (PTEs) with distributive income attrib-
viduals, corporations, trusts and estates) of the entities
utable to Oregon sources may file a composite return on
listed above that derive income from or do business in
behalf of its nonresident owners who elect to participate
Oregon to elect to file a composite return.
in the composite filing. The PTE reports the nonresident
owners’ share of Oregon-source distributive income on
one tax return, Form OC, Oregon Composite Return. Filing requirements
Owners of PTEs must decide each year whether to join
Important information
in the filing of a composite return. The election to join in
For tax years beginning before January 1, 2006, PTEs the filing of a composite return is considered made when
could file a multiple nonresident return for nonresident the return is filed. To be included in the composite return,
individual owners who had no Oregon-source income the owners must be an individual full-year nonresident of
other than the distributive income from the PTE. Contact Oregon, a business entity with no commercial domicile in
us if you need to file a tax return for 2005 or earlier. Oregon, a trust that is not a resident trust, or a qualified
funeral trust under ORS 316.282.
Definitions
Withholding requirements
Throughout these instructions, the following terms are
used: If an owner does not join in the filing of a composite re-
turn, the PTE is required to withhold tax and remit the
“FEIN” is Federal Employer Identification Number.
tax to the department on behalf of the non-electing owner
“BIN” is Oregon Business Identification Number. If you unless the non-electing owner:
do not know your Oregon BIN, leave the space on the
• Has Oregon-source distributive income from the PTE
form blank when asked for this number.
that is less than $1,000;
“Owner” is a partner of a partnership or limited liability
• Has made estimated tax payments the prior tax year
partnership (LLP), shareholder of an S corporation, or
based on the owner’s share of Oregon-source distribu-
member of a limited liability company (LLC), or benefi-
tive income from the PTE and continues to make esti-
ciary of a trust.
mated tax payments for the current tax year; or
“Pass-through entity (PTE)” is a partnership, S corpora-
• Files a signed Oregon Affidavit for a Nonresident Owner
tion, LLP, LLC, or certain trusts.
in a Pass-through Entity, (see page 8).
“Electing owner” is an owner who chooses to join in the
Note: Withholding is not required if the owner is an estate
filing of a composite return.
or trust.
“Non-electing owner” is an owner who chooses not to
join in the filing of a composite return and is subject to
Due dates
withholding on their distributive share of the income
from the PTE. The due date for the Oregon composite return is the same
as the due date for the majority of the electing owners’
tax returns. If the majority of owners file calendar year
General information
returns, the composite return will also be a calendar year
return. The fiscal year end of the PTE does not affect the
Individual owners of a partnership, S corporation, LLP,
LLC, or trust having gross income above the threshold due date.
1
150-101-154 (Rev. 12-06)

2. Example. A PTE uses a March 31, 2006 fiscal year end and composite returns. Oregon net taxable income of the PTE
means the federal net income of the PTE as defined by the
distributes income to its owners during 2006. The majority
laws of the United States modified by ORS Chapter 316.
of the owners are calendar year taxpayers. Because the
See ORS Chapter 316 for those items that directly relate
owners’ distributive share of income was received dur-
to the nonresident owners’ share of the PTE’s net income.
ing calendar year 2006, the Form OC, Oregon Composite
Examples of the modifications allowed in ORS Chapter
Return must be filed using the calendar year and is due
316 that relate to the PTE’s income include adjustments
April 16, 2007.
for depreciation, depletion, gain or loss difference on the
sale of depreciable property, U.S. government interest,
Extensions
and any modification for federal targeted jobs tax credit.
If the PTE is granted a federal extension to file its informa-
tion return, the same additional length of time is allowed Self-employment tax deduction
for filing the Oregon composite return in accordance with
Each PTE must calculate the self-employment tax deduc-
the “Due date” section. If the PTE only needs an exten-
tion for each electing member that is subject to self-em-
sion to file the Oregon return, a payment to Oregon must
ployment tax. The self-employment tax deduction that is
be made at the time of the extension. Use Form 40-EXT,
attributable to the Oregon-source distributive income is
Automatic Extension for Individuals and Payment Voucher,
subtracted from the Oregon-source distributive income
for individual owners and Form 20-V, Oregon Corporation
and the net result is entered on Schedule OC1, column
Tax Payment Voucher, for corporate owners. Check the
(d).
“extension” box and the quot;Composite Returnquot; box on the
vouchers. Mail the completed payment voucher with your
Credits
payment. When Form OC is filed, check the quot;extensionquot;
box. Attach a copy of the extension form to the composite
Credits normally allowed on owners’ tax returns, such as
return when it is filed and keep a copy for your records.
the exemption credit, are not allowed on the composite
Remember: An extension allows for more time to file, not
return. For personal income taxpayers, the only credit
more time to pay.
allowed on the composite return is the credit for income
taxes paid to another state. See Form 40N, Individual
Instructions for electing owners Income Tax Return for Nonresidents, page 28 for instruc-
tions. For corporate excise or income taxpayers, the only
credit allowed on the composite return is the Oregon state
Apportionable income surplus refund credit. See line instructions for Schedule
OC2.
If the PTE has income that is part of a multi-state busi-
ness operation, the nonresident owner will compute their
share of Oregon net taxable income or loss from the PTE
Tax payment instructions
by multiplying the PTE’s total apportioned Oregon tax-
able income or loss by the owner’s ownership percentage. The PTE is required to make quarterly estimated tax pay-
See ORS 314.280 or 314.650 through 314.670. ments in the PTE’s name on behalf of all owners who elect
to join in the composite filing. Calculate the amount of
Example: A partnership will multiply the Oregon ap-
estimated tax required to be paid as follows:
portioned income by each partner’s distributive share
of partnership income. An S corporation will multiply For individual electing owners: multiply the electing
the Oregon apportioned income by each shareholder’s owner’s share of Oregon-source distributive income by
distributive share of the S corporation’s income. the tax rate for the electing owner’s filing status. See page
3 for the 2007 estimated tax rate charts for individuals.
Guaranteed payments Use Form 40-ESV, Oregon Estimated Income Tax Payment
Voucher, in the PTE’s name to make the estimated tax
Guaranteed payments are treated as a business income
payment.
component of the PTE’s distributive income and attrib-
For corporate electing owners: multiply the electing
uted directly to the owner receiving the payment. See
owner’s share of Oregon-source distributive income by
OAR 150-316.124(2).
6.6 percent. Use Form 20-V, Oregon Corporation Tax Pay-
ment Voucher, to make the estimated tax payment.
Deductions
For estate or trust electing owners, estimated tax pay-
Individual tax deduction
ments aren’t required. If you choose to make estimated
Deductions normally allowed to individuals (itemized payments, multiply the electing owner’s share of Oregon-
deductions or the standard deduction) are not allowed on source distributive income by the tax rate for married
2
150-101-154 (Rev. 12-06)

3. Tax rate chart S:
For persons filing Single, or Married filing separately
If your taxable income is: Your tax is:
Tax rate Not over $2,850 ....................................................... 5% of taxable income
charts Over $2,850 but not over $7,150 ...................... $143 plus 7% of excess over $2,850
Over $7,150 .............................................................. $444 plus 9% of excess over $7,150
for
computing Tax rate chart J:
For persons filing Jointly, Head of household,
2007
or Qualifying widow(er) with dependent child
Oregon If your taxable income is: Your tax is:
estimated tax Not over $5,700 ....................................................... 5% of taxable income
Over $5,700 but not over $14,300.................... $285 plus 7% of excess over $5,700
Over $14,300 ............................................................ $887 plus 9% of excess over $14,300
Caution: The tax rates change because of inflation. Use this rate chart for figuring your 2007 estimated tax.
Don’t use a 2006 rate chart.
filing separately. See above for the 2007 estimated tax rate Instructions for Schedule OC1—
charts. Use Form 41-V, Oregon Fiduciary Payment Voucher,
Individual owners
to make the estimated tax payment.
Fill in the PTE’s name, year-end date, FEIN, BIN, and the
Use only one Form 40-ESV (for individual electing own-
name and telephone number of the person preparing the
ers), one Form 20-V (for corporate electing owners), or schedule.
one Form 41-V (for estates or trusts) to report estimated
Lines 1 through 20. For each electing individual owner,
payments. You do not need to file a separate voucher
complete one line. If more than 20 lines are needed, use
for each electing owner. Instead, file one voucher in the additional copies of Schedule OC1. Enter the following
PTE’s name for each tax type. Enter the name, address, information:
FEIN, and BIN of the PTE on the voucher, not the electing
Column (a). Enter the individual’s filing status. Use “J”
owner’s identifying information. Check the “Composite for married filing jointly or qualifying widow(er); “S” for
Return” box on each voucher you file. single filers; “H” for head of household; or “M” for mar-
ried filing separately.
Due dates for estimated tax payments Column (b). Enter the electing owner’s ownership per-
centage in the PTE.
The due dates for estimated tax payments follow the due
dates required for the majority of the electing owners. Column (c). Enter the electing owner’s total share of dis-
tributive income from the PTE (this is the amount that is to
• If the majority of electing owners are calendar year
be reported on the electing owner’s federal tax return).
filers, the due dates for the estimated tax payments
Column (d). Enter the electing owner ’s distributive
are: 1st quarter, April 16, 2007; 2nd quarter, June 15,
income from Oregon sources only, less the deduction
2007; 3rd quarter, September 17, 2007; and 4th quarter, for one-half self-employment tax attributable to Oregon
January 15, 2008 (or December 17, 2007 for corporate sources.
calendar year filers).
Column (e). Use the 2006 tax rate charts on page 4 to cal-
culate Oregon income tax based on filing status.
• If the majority of the electing owners are fiscal year fil-
ers, the estimated tax due dates are the 15th day of the Column (f). Calculate the credit for income taxes paid to
fourth, sixth, ninth, and twelfth months following the another state. See page 28 of Form 40N for instructions.
beginning of the fiscal year. Column (g). Subtract the amount in column (f) from the
amount in column (e) and enter the result.
Note: If the due date falls on a Saturday, Sunday, or legal
holiday, use the next regular business day. Column (h). Enter the estimated tax payments made by
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150-101-154 (Rev. 12-06)

4. the PTE on the electing owner’s behalf. Lines 1 through 20. For each electing corporate owner,
complete one line. If more than 20 lines are needed, use
Column (i). Calculate interest on underpayment of esti-
additional copies of Schedule OC2. Enter the following
mated taxes. Interest on the underpayment of estimated
information:
tax is due when an individual electing owner has a tax
Column (a). Enter the type of tax the corporate owner
liability in excess of $1,000 after credits. Calculate the
is subject to. Enter “E” for corporate excise tax or “I” for
interest for each owner separately using Form 10, Under-
corporate income tax. Contact us if you don’t know which
payment of Oregon Estimated Tax.
tax you are subject to. See page 14.
Line 21(g). Total the amounts shown on all lines of col-
Column (b). Enter the electing owner’s ownership per-
umn (g) and enter the result here and on Form OC, line
centage in the PTE.
1(a).
Column (c). Enter the electing owner’s total share of
Line 21(h). Total the amounts shown on all lines of col-
distributive income from the PTE (this is the amount
umn (h) and enter the result here and on Form OC, line
that is to be reported on the electing owner’s federal tax
2(a).
return).
Line 21(i). Total the amounts shown on all lines of column
Column (d). Enter the electing owner’s distributive in-
(i) and enter the result here and on Form OC, line 6(a).
come from Oregon sources only.
Note: If you use more than one Schedule OC1, total all
Column (e). Multiply the amount reported in column
pages on the first page and carry that amount to Form
(d) by 6.6 percent. If there is an quot;Equot; in column (a) and the
OC.
result is less than $10, enter $10 for that owner.
Estates or trusts Column (f). For tax year 2006, there is no corporate sur-
plus.
If the electing owner is an estate or trust, adapt and com-
plete Schedule OC1 as it pertains to the estate or trust. Column (g). Subtract the amount in column (f) from the
Refer to the basic instructions for Schedule OC1, on page amount in column (e) and enter result.
3. In column (e), use the married filing separately tax rate.
Column (h). Enter the estimated tax payments made by
See the 2006 tax rate charts below. Do not complete col-
the PTE on the electing owner’s behalf.
umn (i), interest on underpayment of estimated tax—this
does not apply to estates or trusts. Enter the total of col- Column (i). Calculate interest on underpayment of esti-
umn (g) on line 21 and on Form OC, page 2, line 1. Page mated taxes. Interest on the underpayment of estimated
two of Form OC is designed for estates (lines 1c – 12c) and tax is due when a corporate electing owner has a tax li-
trusts (lines 1d – 12d). ability in excess of $500 after credits. Calculate the interest
for each owner separately using Form 37, Underpayment
of Oregon Corporation Estimated Tax.
Instructions for Schedule OC2—
Line 21(g). Total the amounts shown on all lines of col-
Corporate owners umn (g) and enter the result here and on Form OC, line
1(b).
Fill in the PTE’s name, year-end date, FEIN, BIN and the
name and telephone number of the person preparing the Line 21(h). Total the amounts shown on all lines of column
schedule. (h) and enter the result here and on Form OC, line 2(b).
2006 Tax Rate Charts
J
S Tax Rate Chart
Tax Rate Chart
For persons filing
For persons filing
Jointly, head of household, or qualifying
Single or married filing separately
widow(er) with dependent child
If your taxable income is: ............Your tax is:
If your taxable income is: ...........Your tax is:
Not over $2,750 ............................5% of taxable income
Not over $5,500 ...........................5% of taxable income
Over $2,750 but ...........................$138 plus 7% of the
Over $5,500 but ..........................$275 plus 7% of the
not over $6,850 excess over $2,750
not over $13,700 excess over $5,500
Over $6,850...................................$425 plus 9% of the
Over $13,700................................$849 plus 9% of the
excess over $6,850
excess over $13,700
4
150-101-154 (Rev. 12-06)

5. Line 21(i). Total the amounts shown on all lines of column $500 or more for corporations. To determine if there is
(i) and enter the result here and on Form OC, line 6(b). an underpayment, individuals use Form 10, Underpay-
ment of Oregon Estimated Tax. Corporations use Form 37,
Note: If you use more than one Schedule OC2, total all
Underpayment of Oregon Corporation Estimated Tax. See
pages on the first page and carry that amount to the Form
instructions for Schedule OC1 or OC2.
OC.
8. Balance due. Payment of the amount due must accom-
Schedules OC1 and OC2 or equivalent must be filed with
pany the Oregon composite return. The PTE must pay the
the composite return. Schedules OC1 and OC2 report each
total amount due on behalf of the nonresident owners.
nonresident owner’s Oregon tax liability. A computer-
The balance due must include the tax shown plus any
created schedule is acceptable if it contains the informa-
penalty or interest as required by Oregon law.
tion for each owner who elects to participate in the filing
of the composite return that is required on Schedule OC1 Remitting payment. Where an overpayment exists for
or OC2. either column a, b, c, or d, and a tax due exists in any one
of the other columns, the tax due cannot be offset by an
overpayment shown in another column. You must remit
Line instructions for Form OC payment for amounts in column (a) with Form 40-V,
Oregon Income Tax Payment Voucher for individual owners.
PTEs must file Form OC, Oregon Composite Return on behalf
Remit payment for amounts in column (b) with Form 20-
of electing nonresident owners. As the designated agent,
V, Oregon Corporation Tax Payment Voucher for corporate
the PTE is liable for any tax, penalty, and interest due, in-
owners. Remit payments for amounts in column (c) or (d)
cluding interest on underpayment of estimated tax.
with Form 41-V, Oregon Fiduciary Payment Voucher.
When completing the header section of Form OC, be sure
If a refund is shown in any of those columns, the depart-
to include the number of each type of electing owner of
ment will issue a separate check for the amount shown
the PTE. For example, if the PTE is owned by eight S cor-
in each column.
porations and 15 individuals, include only the number of
owners who have elected to join in the composite filing.
Instructions for non-electing owners
The following instructions are for lines that are not fully
explained on the form.
Tax payment instructions (withholding)
5. Penalty and interest. Include a penalty payment if
you: The PTE is required to make an annual tax payment
(withholding) on behalf of all owners who do not elect to
• Pay your tax due after the original due date (even if you
join in the composite filing unless the non-electing owner
have an extension).
meets one of the exceptions listed on page 1. Calculate the
• File the composite return showing tax due after the due
amount of tax to be withheld and remitted to the depart-
date, including any extension.
ment as follows:
Penalty is 5 percent of the unpaid balance of your tax as
• For owners subject to individual income tax, remit 9
of the due date, not including extensions (generally April
percent of the non-electing owner’s share of Oregon-
15). If you file more than three months after the due date
source distributive income.
or extension due date, add an additional 20 percent pen-
• For owners subject to corporate income or excise tax,
alty, for a total of 25 percent of the unpaid tax.
remit 6.6 percent of the non-electing owner’s share of
If you don’t pay the tax due by the due date, interest is
Oregon-source distributive income.
due on the unpaid tax. The current interest rate is 9 per-
Payments must be made in the non-electing owner’s
cent per year or 0.75 percent per month. Interest is figured
name as it will be shown on their individual or corporate
daily (0.0247 percent per day) for periods of less than a
income or excise tax return. The annual tax payment must
month. A month, for example, is May 16 to June 15. Here’s
be accompanied by Form 40-ESV for each individual
how to figure daily interest:
taxpayer, or Form 20-V for each corporate taxpayer. On
Tax × 0.000247 × Number of days past the due date of
the voucher, identify the quarter in which the payment
the return
is being made.
If the tax is not paid within 60 days of the original billing
Note: Withholding is not required for owners who are
notice, the interest rate increases to 13 percent per year.
estates or trusts.
6. Interest on estimated tax underpayment. You must
pay interest on the underpayment of estimated tax if the
amount on line 4 is $1,000 or more for individuals, or
5
150-101-154 (Rev. 12-06)

6. reconciliation. This reconciliation requirement is for pay-
Annual tax payment on behalf of 50 or more
ments made during 2006 only.
non-electing owners
The PTE must send the department a reconciliation
If a PTE has 50 or more non-electing owners, the PTE may
schedule that reports the following information for each
choose to file one schedule listing all non-electing owners
non-electing owner:
instead of filing an individual payment voucher for each
non-electing owner. The PTE should complete a schedule (a) The non-electing owner’s name, SSN/FEIN/BIN;
that contains the following information:
(b) The total quarterly tax payments made during 2006;
• For the PTE that is filing the report, provide:
(c) The actual Oregon-source distributive income;
—Name of PTE, address, FEIN/BIN, and the PTE’s year
(d) The actual Oregon-source distributive income mul-
end; and
tiplied by the required withholding rate (9 or 6.6
percent);
• For each non-electing owner, provide:
(e) The difference between the amount reported on line
—Name, address, SSN/FEIN/BIN, subject income, and
(b) above and the amount that should have been paid
total tax withheld from the distribution.
on line (d) above for each non-electing owner.
Send the tax payment for all individual taxpayers with
If there is a shortage in tax paid (withholding), send pay-
one Form 40-ESV, Oregon Estimated Income Tax Payment
ment with the reconciliation report to post the additional
Voucher, along with the completed schedule. Send the tax
tax to the non-electing owner’s account.
payment for all corporate taxpayers with one Form 20-V,
Oregon Corporation Tax Payment Voucher, along with the
completed schedule. Enter quot;see statementquot; in the name
Revoking election to join in the
field of the payment voucher, not the PTE’s name. Do not
filing of a composite return
check the “Composite Return” box on a payment voucher
used for this purpose.
An electing owner may revoke their election to join in
the filing of the composite return. To revoke an election,
Due dates for annual tax payment (withholding)
report the Oregon-source distributive income from the
The due date for annual tax payments is the same as the due PTE on:
date for the federal Schedule K-1 that the PTE must issue
• an Oregon individual income tax return; or
to the owner.
• an Oregon corporate excise or income tax return.
Year end tax payment summary If the PTE has made estimated payments in the PTEs
name, the PTE must request the department to transfer
The PTE must provide each non-electing owner with a
the payment from the PTE to the revoking owner at the
statement that shows the payments made on the non-
revoking owner’s request.
electing owner’s behalf. The statement is required to be
provided to the non-electing owner on or before the later
Requesting transfer of payment
of the due date of the federal Schedule K-1 or the PTE’s
informational return. The statement must clearly show
the tax year in which the distributive income is received, PTE instructions
the date the payments were made, and to which tax year
The PTE is required to file a statement requesting that pay-
the payments apply. The non-electing owner must attach
ments made on behalf of revoking owners be transferred
a copy of this statement to their regular return to ensure
from the PTE’s name to the revoking owner’s name. See
that tax payments are credited to the correct tax year.
page 13. File this statement with the department as soon
as the owner revokes their election to join in the composite
Tax year 2006 quarterly tax payment filing and provide a copy of the request to the revoking
owner. This statement must be filed before either the
reconciliation report
composite return or the revoking owner’s return is filed.
PTEs that have non-electing owners for which the PTE has Send to: Oregon Department of Revenue, PO Box 14999,
remitted quarterly tax payments during 2006 must file an Salem OR 97309.
annual reconciliation of the quarterly tax payments with
the department. The due date for the annual reconcilia-
Revoking owner instructions
tion is the due date for the PTE’s informational return (for
example, Form 65, Form 20-S, etc.). The PTE is responsible The revoking owner must attach a copy of the transfer
for paying any shortage of withholding with the annual request to the revoking owner’s tax return. A separate
6
150-101-154 (Rev. 12-06)

7. return filed by a revoking owner is treated as an original An adjustment will need to be made on the electing
return and the tax liability shown on the return, if any, owner’s tax return to reflect the tax paid on the owner’s
will be subject to penalty and interest. If the revoking share of Oregon-source distributive income with the
owner does not have adequate estimated tax payments Oregon Composite Return.
on account, the revoking owner will be subject to interest
For personal income taxpayers, include the total distribu-
on underpayment of estimated tax. The decision to revoke
tive income (from the K-1 received from the PTE) in the
a previous election by one or more owners has no effect
federal column of Form 40N, line 18F. Include the total
on the election of the remaining owners. Transferring
Oregon-source distributive income [from Schedule OC1,
payments from one account to another may delay the
column (d)] in the Oregon column of Form 40N, line 18S.
processing of the revoking owner’s return.
Subtract the amounts related to the PTE that are shown
on Form 40N, lines 18F and 18S from both the federal and
Oregon columns of Form 40N, lines 37F and 37S. Identify
Amending the composite return
the subtraction using numeric code 341.
The PTE may file an amended return to adjust any item
For corporate taxpayers, enter the “net tax” amount from
reported on the original composite filing or to carry back
Schedule OC2, column (g) of the electing owner’s line on
Oregon net operating losses. File Form OC for the year
Form 20, line 17 or Form 20-I, line 18 for the adjustment
that is being adjusted or the year the loss is being carried
related to the tax paid on the income from the PTE.
back to and check the “Amended” box in the header. File
a schedule with the amended return that reconciles prior
payments and refunds to the corrected tax. Instructions for Oregon Affidavit
Net operating loss carryback for individual income tax pur-
If the owner of the PTE chooses not to join in the filing of
poses only. Attach a schedule to the amended return naming
a composite return, the PTE must withhold tax from the
the owners and showing the year and calculation of the net
non-electing owner’s Oregon-source distributive income
operating loss. For corporate excise and income tax purposes,
if the non-electing owner does not meet an exception or
net operating losses may only be carried forward.
file an Oregon Affidavit. To be exempt from the with-
When you file the amended return, you must remit pay- holding requirement, the non-electing owner must file
ment along with a Form 40-V, Oregon Income Tax Pay- an Oregon Affidavit with the department as soon as it
ment Voucher for individual owners, Form 20-V, Oregon is known that the owner will receive Oregon-source dis-
Corporation Tax Payment Voucher for corporate owners, or tributive income from the PTE. The non-electing owner
Form 41-V, Oregon Fiduciary Payment Voucher for estates must provide a copy of a completed Oregon Affidavit to
and trusts, for each amount shown in each column; a, b, the PTE so the PTE will not withhold tax on the Oregon-
c, or d separately. source distributive income. See page 8.
Any refund will be paid to the PTE regardless of any own- The non-electing owner must file the affidavit before receiv-
ership changes or changes in the identity of the owners ing any distribution from the PTE to the non-electing owner.
participating in the composite filing. The affidavit is valid until it is replaced by a subsequent
filing due to changes in the ownership of the PTE, or any
Note: A PTE may receive more than one refund check
change of information relating to the non-electing owner.
from one composite filing depending on whether the
owners are corporate, individual, or estates or trusts. Revoking an affidavit
To revoke a previously filed affidavit, send a copy of the
Instructions for electing owners who original affidavit with the revocation section completed
have other Oregon-source income to the department and the PTE. See page 8.
Electing owners who have additional income from Oregon
sources or who are doing business in Oregon are required
to file their own tax return in addition to the composite
return. Nonresident individual owners will file on Form
40N, Oregon Individual Income Tax Return for Nonresidents.
Corporate owners will file on Form 20, Oregon Corporation
Excise Tax Return or Form 20-I, Oregon Corporation Income
Tax Return. Estate and trust owners will file on Form 41,
Oregon Fiduciary Income Tax Return. Download these forms
from our website, www.oregon.gov/DOR. Or, contact us
to order them. See page 14.
7
150-101-154 (Rev. 12-06)

8. Form 150-101-175,
Oregon Affidavit for a Nonresident Owner in a Pass-Through Entity,
is available for download on our website,
www.oregon.gov/DOR.
Click on quot;Tax Formsquot; then quot;Personal Income Tax.quot;
8
150-101-154 (Rev. 12-06)

9. Clear This Page
2006
Oregon Department of Revenue
Schedule OC1
Composite Return Tax Calculation For Individual Owners
Federal Employer Identification Number (FEIN)
Name of Pass-Through Entity (PTE)
Entity Year End Oregon Business Identification Number (BIN)
Name and Telephone Number of Person Preparing This Schedule
Total number of partners, LLC members, shareholders, or beneficiaries included in this group return: ___________
Electing Nonresident Member Information
(c) (d) Share of (f) Credit for (i)
(g)
(a) (b) Share of Oregon-source (e) Income Taxes (h) Share of Interest on
Net Oregon
Filing Ownership Federal Distributive Oregon Paid to Estimated Underpayment
Nonresident Member Name Income Tax
Social Security Number Status Percentage Income Income Income Tax Another State Tax Paid of Tax
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21. Total for each column (g), (h), and (i)
Attach this schedule to your Form OC, Oregon Composite Return.
Page _______ of _______ Make copies of this page for additional nonresident owners electing to join the composite filing.
If using more than one page, total all pages on line 21 of the final page.
150-101-154 (Rev. 12-06) Web

10. Clear This Page
2006
Oregon Department of Revenue
Schedule OC2
Composite Return Tax Calculation For Corporate Owners
Federal Employer Identification Number (FEIN)
Name of Pass-Through Entity (PTE)
Entity Year End Oregon Business Identification Number (BIN)
Name and Telephone Number of Person Preparing This Schedule
Electing Nonresident Member Information
(c) (f) (h) (i)
(d) Share of
(g)
(a) (b) Share of (e) Corporate Share of Interest on
Oregon-source
Net
Tax Type Ownership Federal Oregon Excise Surplus Rebate Estimated Underpayment
Distributive
Corporation Name Tax
FEIN (E or I) Percentage Income or Income Tax 0% Tax Paid of Tax
Income
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21. Total for each column (g), (h), and (i)
Attach this schedule to your Form OC, Oregon Composite Return.
Page _______ of _______ Make copies of this page for additional nonresident owners electing to join the composite filing.
If using more than one page, total all pages on line 21 of the final page.
150-101-154 (Rev. 12-06) Web

11. Clear This Page
Form
OREGON COMPOSITE For office use only
OC RETURN 2006
Page 1 F B E T
Use this form for qualified electing nonresident individuals and corporate owners who are subject to personal income or corporate
income or excise tax. For owners of the pass-through entity who are estates or trusts, complete page 2. Complete this return in blue or
black ink only.
Oregon Business Identification Number (BIN)
Name of Pass-Through Entity
Federal Employer Identification Number (FEIN)
Number and Street PO Box
City or Town State Zip Code
Type of PTE Filing This Return (Check Box): If Extension Was
If Amending,
•
• Filed, Check Here
Check Here
Trust
S Corporation Partnership LLC
Number of Owners Included in This Composite Return That Are: Fiscal Year End:
Individuals_____ C Corporations_____ S Corporations_____ Estates_____ Trusts_____
Corporate Income or
Individual Income
Excise Tax
Tax
1. Net tax [from Schedule OC1 or OC2, column 21 (g)] ........................................ •1a 1b
2. Estimated tax paid [from Schedule OC1 or OC2, column 21(h)]
or amount paid with extension (if any) ................................................................. •2a 2b
3. Overpayment. Is line 1 less than line 2? If so, line 2 minus line 1 ................ •3a 3b
4. Tax to Pay. Is line 1 more than line 2? If so, line 1 minus line 2 ................... •4a 4b
5. Penalty and interest. (See instructions, page 5) ...................................................5a 5b
6. Interest on underpayment of estimated tax [Schedule OC1 or OC2, column 21(i)] •6a 6b
7. Amount you owe. Add lines 4 through 6. This is the amount you owe ..........7a 7b
8. Balance due. Is line 7 more than line 3? If so, line 7 minus line 3 ..................8a 8b
9. Refund. Is line 3 more than line 7? If so, line 3 minus line 7 ............................9a 9b
•
10. Fill in the part of line 9 you want applied to your 2007 estimated tax .......... 10a 10b
11. Net refund. Line 9 minus line 10. This is your net refund ................................11a 11b
Under penalty of false swearing, I declare that the information in this return and any attachments is true, correct, and complete.
Date
Signature of General Partner, LLC Member, or Officer
SIGN
HERE X
Keep a copy Title Telephone
of this return
( )
for your tax
records Paid Preparer's Signature Date
X
Preparer License Number
Preparer's Name and Address
•
Make check or money order payable to: Oregon Department of Revenue
Write the pass-through entity's FEIN or BIN and quot;2006 Oregon Form OCquot; on your payment.
Mail to: Refund or No Tax Due Tax to Pay
Oregon Department of Revenue Oregon Department of Revenue
PO Box 14700 PO Box 14555
Salem OR 97309-0930 Salem OR 97309-0940
150-101-154 (Rev. 12-06) Web

12. Clear This Page
Form
OREGON COMPOSITE
OC RETURN 2006
Page 2
Name of Pass-Through Entity Oregon Business Identification Number (BIN)
Trusts
Estates
1. Net tax [from Schedule OC1, column 21 (g)] .................................................. 1c 1d
2. Estimated tax paid [from Schedule OC1, column 21(h)] ................................ 2c 2d
3d
3. Amount paid with extension (if any) ................................................................ 3c
4d
4. Total payments. Add lines 2 and 3 .................................................................. 4c
5d
5. Overpayment. Is line 1 less than line 4? If so, line 4 minus line 1 ................ 5c
6d
6. Tax to Pay. Is line 1 more than line 4? If so, line 1 minus line 4 .................... 6c
7d
7. Penalty and interest. (See instructions, page 4) ............................................. 7c
8d
8. Amount you owe. Add lines 6 and 7. This is the amount you owe ............... 8c
9d
9. Balance due. Is line 8 more than line 5? If so, line 8 minus line 5 ................ 9c
10d
10. Refund. Is line 5 more than line 8? If so, line 5 minus line 8 ....................... 10c
11d
11. Fill in the part of line 10 you want applied to your 2007 estimated tax ......... 11c
12d
12. Net refund. Line 10 minus line 11. This is your net refund .......................... 12c
Note: You do not need to file page 2 of Form OC if there are no electing owners that are estates or trusts.
150-101-154 (Rev. 12-06) Web

13. Clear This Page
Tax Year Oregon Composite Return Payment Transfer Request for
Transfers from Pass-Through Entity to Non-electing Owner
Use this form for nonresident owners when tax payments need to be transferred from the entity to the owners because the owners are not joining in the
composite filing and estimated taxes have already been paid in the pass-through entity's name.
Name of Pass-through Entity Federal Employer Identification Number (FEIN)
Number and Street PO Box Oregon Business Identification Number (BIN)
City or Town State Zip Code Office Use Only
Note: It takes 8-12 weeks to process your request to move tax payments from one account to another.
Quarter 1 Quarter 2
SSN/FEIN or BIN
Individual Name Quarter 3 Quarter 4 Total Estimated
Payments to Transfer
$
1.
$
2.
$
3.
$
4.
$
5.
$
6.
$
7.
$
8.
$
9.
$
10.
$
11.
$
12.
$
13.
$
14.
$
15.
$
16.
$
17.
$
18.
$
19.
$
20.
$
21.
$
22.
$
23.
$
24.
$
25.
Under penalties for false swearing, I certify that I am authorized to request transfer of estimated tax payments from the above-
named pass-through entity's tax account to the tax accounts listed above.
Signature of General Partner, LLC Member, or Officer Date
SIGN X
HERE Title Telephone
Keep a copy
of this return Paid Preparer's Signature Date
X
for your tax
records Preparer's Name and Address Preparer License Number
150-101-154 (Rev. 12-06) Web

14. Taxpayer assistance Internet www.oregon.gov/DOR
• Download forms and publications
Printed information (free) • Get up-to-date tax information
• E-mail: questions.dor@state.or.us
Income tax booklets are available at many post offices,
This e-mail address is not secure. Do
banks, and libraries. For booklets and other forms and
not send any personal information.
publications, you can also access our website, order by
General questions only.
telephone, or return the form below.
✂ Check your refund at www.oregonrefund.com
Check individual boxes to order. Complete name and address section.
Correspondence
Clip on the dotted line, then mail the entire list to the address below.
Write to: Oregon Department of Revenue,
Forms and instructions
955 Center St NE, Salem OR 97301-2555.
Forms 40P & 40N, Part-Year & Nonresident ......150-101-045
Include your Social Security number and a
Form 40-EXT, Oregon Automatic Extension
daytime telephone number for faster service.
and Payment Voucher ..............................................150-101-165
Telephone
Form 40-V, Oregon Income Tax Payment
Voucher .........................................................................150-101-172
Salem ..............................................................503-378-4988
Form 41-V, Oregon Fiduciary Tax Payment
Toll-free from an Oregon prefix.................1-800-356-4222
Voucher .........................................................................150-101-173
Call one of the numbers above to:
Form 41-ESV, Oregon Individual Estimated
• Check on the status of your 2006
Tax Payment Voucher ................................................150-101-026
personal income tax refund
Form 20, Corporation Excise Tax ..........................150-102-020
(beginning February 1).
Form 20-I, Corporation Income Tax .................... 150-102-021
• Order tax forms.
Form 20-V, Oregon Corporation Tax
• Hear recorded tax information.
Payment Voucher .......................................................150-102-172
For help from Tax Services, call one of the numbers above:
Estimated Income Tax Payment Instructions
Monday through Friday ................................... 7:30 a.m.–5:00 p.m.
and Vouchers...........................................................150-101-026/-2
Closed Thursdays from 9:00 a.m.–11:00 a.m. Closed on holidays.
Form 10, Underpayment of Oregon
Extended hours during tax season:
Estimated Tax ............................................................... 150-101-031
April 2–April 16, Monday–Friday .................. 7:00 a.m.–7:00 p.m.
Form 37, Underpayment of Corporation Saturday, April 14 ............................................... 9:00 a.m.–4:00 p.m.
Estimated Tax ...............................................................150-102-037 Wait times may vary.
Form 65, Partnership Return of Income ...............150-101-065 Asistencia en español:
Salem .........................................................503-945-8618
Publications
Gratis de prefijo de Oregon.................1-800-356-4222
2-D Barcode Filing for Oregon ................................. 150-101-631
TTY (hearing or speech impaired; machine only):
Audits: What To Do if You Are Audited .................150-101-607
Salem .........................................................503-945-8617
Computing Interest on Tax You Owe ...................150-800-691
Toll-free from an Oregon prefix..........1-800-886-7204
Credit for Income Taxes Paid to Another State .....150-101-646
Americans with Disabilities Act (ADA): Call one of the
Divorce and Taxes ......................................................150-101-629
help numbers for information in alternative formats.
Electronic Filing for Oregon .....................................150-101-630
Estimated Income Tax ...............................................150-101-648
Field offices
Income Tax Filing Extension ....................................150-101-660
Record-Keeping Requirements ...............................150-101-608 Get forms and assistance at these offices. Do not send
your return to these addresses.
Your Rights as an Oregon Taxpayer .................... 150-800-406
List of other printed information: Bend 951 SW Simpson Avenue, Suite 100
Form and Publication Order ..................................150-800-390 Eugene 1600 Valley River Drive, Suite 310
Gresham 1550 NW Eastman Parkway, Suite 220
Send to: Forms, Oregon Department of Revenue
Medford 3613 Aviation Way, #102
PO Box 14999, Salem OR 97309-0990
Newport 119 NE 4th Street, Suite 4
Please print North Bend 3030 Broadway
Name_____________________________________________ Pendleton 700 SE Emigrant, Suite 310
Address ___________________________________________ Portland 800 NE Oregon Street, Suite 505
Salem Revenue Building, 955 Center Street NE, Room 135
City ______________________________________________
Salem 4275 Commercial Street SE, Suite 180
State ___________________ ZIP Code _______________
Tualatin 6405 SW Rosewood Street, Suite A
14
150-101-154 (Rev. 12-06)